Anavex Life Sciences (AVXL) 10-Q 9 May 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Mar. 31, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--09-30
Entity File Number	001-37606
Entity Registrant Name	ANAVEX LIFE SCIENCES CORP.
Entity Central Index Key	0001314052
Entity Tax Identification Number	98-0608404
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	630 5th Avenue
Entity Address, Address Line Two	20th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Country	US
Entity Address, Postal Zip Code	10111
City Area Code	844
Local Phone Number	689-3939
Title of 12(b) Security	Common Stock Par Value $0.001
Trading Symbol	AVXL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		80,837,723

Condensed Interim Consolidated

Condensed Interim Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2023	Sep. 30, 2022
Current
Cash and cash equivalents	$ 153,466,962	$ 149,157,861
Incentive and tax receivables	4,737,661	3,192,580
Prepaid expenses and other current assets	981,774	354,162
Total Assets	159,186,397	152,704,603
Current Liabilities
Accounts payable	6,281,742	3,824,777
Accrued liabilities - Note 4	6,822,838	5,944,953
Deferred grant income - Note 3	916,763	443,831
Total Liabilities	14,021,343	10,213,561
Commitments and Contingencies - Note 6
Capital stock Authorized:10,000,000 preferred stock, par value $0.001 per share
Capital stock Authorized:200,000,000 common stock, par value $0.001 per share 80,235,398 common shares (September 30, 2022 - 77,942,815)	80,236	77,944
Additional paid-in capital	416,727,598	387,976,881
Accumulated deficit	(271,642,780)	(245,563,783)
Total Stockholders' Equity	145,165,054	142,491,042
Total Liabilities and Stockholders' Equity	$ 159,186,397	$ 152,704,603

Condensed Interim Consolidate_2

Condensed Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	80,235,398	77,942,815
Common stock, shares outstanding	80,235,398	77,942,815

Condensed Interim Consolidate_3

Condensed Interim Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Operating expenses
General and administrative	$ 2,882,568	$ 2,915,158	$ 6,199,604	$ 5,982,109
Research and development	11,306,591	8,604,589	23,373,510	17,261,028
Total operating expenses	14,189,159	11,519,747	29,573,114	23,243,137
Operating loss	(14,189,159)	(11,519,747)	(29,573,114)	(23,243,137)
Other income (expenses)
Grant income			25,000
Research and development incentive income	749,681	835,513	1,483,271	1,646,243
Interest income, net	1,465,221	7,578	2,732,839	12,488
Other financing expense	(964,344)		(964,344)
Foreign exchange (loss) gain	(118,678)	268,645	247,305	324,008
Total other income, net	1,131,880	1,111,736	3,524,071	1,982,739
Net loss before provision for income taxes	(13,057,279)	(10,408,011)	(26,049,043)	(21,260,398)
Income tax expense, current	(50,000)	(29,800)	(29,954)	(59,780)
Net loss and comprehensive loss	$ (13,107,279)	$ (10,437,811)	$ (26,078,997)	$ (21,320,178)
Net Loss per share
Basic and diluted	$ (0.17)	$ (0.14)	$ (0.33)	$ (0.28)
Weighted average number of shares outstanding
Basic and diluted	$ 78,304,363	$ 76,248,603	$ 78,138,940	$ 76,121,792

Condensed Interim Consolidate_4

Condensed Interim Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Share Proceeds Receivable [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Sep. 30, 2021	$ 75,920	$ 348,328,048		$ (197,585,864)	$ 150,818,104
Beginning balance, shares at Sep. 30, 2021	75,918,465
Shares issued upon exercise of stock options	$ 177	496,746			496,923
Shares issued upon exercise of stock options, shares	176,834
Shares issued under Sales Agreement	$ 1,066	14,802,398	(403,696)		14,399,768
Shares issued under Sales Agreement, shares	1,066,389
Less: share issue costs		(537,806)			(537,806)
Stock based compensation		8,348,230			8,348,230
Net loss				(21,320,178)	(21,320,178)
Ending balance, value at Mar. 31, 2022	$ 77,163	371,437,616	(403,696)	(218,906,042)	152,205,041
Ending balance, shares at Mar. 31, 2022	77,161,688
Beginning balance, value at Dec. 31, 2021	$ 76,156	354,759,781		(208,468,231)	146,367,706
Beginning balance, shares at Dec. 31, 2021	76,155,187
Shares issued upon exercise of stock options	$ 40	123,386			123,426
Shares issued upon exercise of stock options, shares	39,700
Shares issued under Sales Agreement	$ 967	12,489,713	(403,696)		12,086,984
Shares issued under Sales Agreement, shares	966,801
Less: share issue costs		(374,720)			(374,720)
Stock based compensation		4,439,456			4,439,456
Net loss				(10,437,811)	(10,437,811)
Ending balance, value at Mar. 31, 2022	$ 77,163	371,437,616	(403,696)	(218,906,042)	152,205,041
Ending balance, shares at Mar. 31, 2022	77,161,688
Beginning balance, value at Sep. 30, 2022	$ 77,944	387,976,881		(245,563,783)	142,491,042
Beginning balance, shares at Sep. 30, 2022	77,942,815
Initial Commitment shares	$ 75	844,425			844,500
Initial commitment shares, shares	75,000
Purchase shares	$ 2,075	18,150,425			18,152,500
Purchase shares, shares	2,075,000
Commitment shares	$ 9	(9)
Commitment shares, shares	9,080
Shares issued upon exercise of stock options	$ 133	439,304			439,437
Shares issued upon exercise of stock options, shares	133,503
Stock based compensation		9,316,572			9,316,572
Net loss				(26,078,997)	(26,078,997)
Ending balance, value at Mar. 31, 2023	$ 80,236	416,727,598		(271,642,780)	145,165,054
Ending balance, shares at Mar. 31, 2023	80,235,398
Beginning balance, value at Dec. 31, 2022	$ 78,033	393,581,544		(258,535,501)	135,124,076
Beginning balance, shares at Dec. 31, 2022	78,032,135
Shares issued under 2023 purchase agreement
Initial Commitment shares	$ 75	844,425			844,500
Initial commitment shares, shares	75,000
Purchase shares	$ 2,075	18,150,425			18,152,500
Purchase shares, shares	2,075,000
Commitment shares	$ 9	(9)
Commitment shares, shares	9,080
Shares issued upon exercise of stock options	$ 44	181,149			181,193
Shares issued upon exercise of stock options, shares	44,183
Stock based compensation		3,970,064			3,970,064
Net loss				(13,107,279)	(13,107,279)
Ending balance, value at Mar. 31, 2023	$ 80,236	$ 416,727,598		$ (271,642,780)	$ 145,165,054
Ending balance, shares at Mar. 31, 2023	80,235,398

Condensed Interim Consolidate_5

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows used in Operating Activities
Net loss	$ (26,078,997)	$ (21,320,178)
Adjustments to reconcile net loss to net cash used in operations:
Non-cash financing related charges	844,500
Stock-based compensation	9,316,572	8,348,230
Changes in working capital balances related to operations:
Incentive and tax receivables	(1,545,081)	2,667,844
Prepaid expenses and deposits	(627,612)	(109,056)
Accounts payable	2,456,965	(2,107,893)
Accrued liabilities	877,885	(619,386)
Deferred grant income	472,932
Net cash used in operating activities	(14,282,836)	(13,140,439)
Cash Flows provided by Financing Activities
Issuance of common shares	18,152,500	14,399,768
Share issue costs		(521,441)
Proceeds from exercise of stock options	439,437	496,923
Net cash provided by financing activities	18,591,937	14,375,250
Increase in cash and cash equivalents during the period	4,309,101	1,234,811
Cash and cash equivalents, beginning of period	149,157,861	152,107,745
Cash and cash equivalents, end of period	153,466,962	153,342,556
Supplemental Cash Flow Information
Cash paid for state and local minimum income taxes	$ 139,577	$ 141,374

Business Description

Business Description	6 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	Note 1 Business Description Business Anavex Life Sciences Corp. (“Anavex” or the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system (“CNS”) diseases with high unmet need. Anavex analyzes genomic data from clinical trials to identify biomarkers, which are used in the analysis of its clinical trials for the treatment of neurodegenerative and neurodevelopmental diseases. The Company’s lead compound ANAVEX ®

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 2 Basis of Presentation Basis of Presentation These accompanying unaudited condensed interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain information and note disclosures normally included in the annual financial statements in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures are adequate to make the information presented not misleading. These accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained herein. The consolidated balance sheet as of September 30, 2022 was derived from the audited annual financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 30, 2022 filed with the SEC on November 28, 2022. The Company follows the same accounting policies in the preparation of interim reports. Operating results for the three and six months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023. Liquidity All of the Company’s potential drug compounds are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or, if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues. To date, we have not generated any revenues from our operations. The Company expects the business to continue to experience negative cash flows from operations for the foreseeable future and cannot predict when, if ever, our business might become profitable. Management believes that the current working capital position will be sufficient to meet the Company’s working capital requirements beyond the next 12 months after the date that these condensed interim consolidated financial statements are issued. The process of drug development can be costly, and the timing and outcomes of clinical trials are uncertain. The assumptions upon which the Company has based its estimates are routinely evaluated and may be subject to change. The actual amount of the Company’s expenditures will vary depending upon a number of factors including but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and development programs and the level of financial resources available. The Company has the ability to adjust its operating plan spending levels based on the timing of future clinical trials. Other than our rights related to the Sales Agreement and the Purchase Agreement (as defined below in Note 5), there can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If the Company is not able to obtain the additional financing on a timely basis, if and when it is needed, it will be forced to delay or scale down some or all of its research and development activities. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to accounting for research and development costs, incentive income receivable, valuation and recoverability of deferred tax assets, stock-based compensation, and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiaries, Anavex Australia Pty Limited (“Anavex Australia”), a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada. All inter-company transactions and balances have been eliminated. Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. At March 31, 2023 and September 30, 2022, the Company did not have any Level 3 assets or liabilities. Basic and Diluted Loss per Share Basic income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the sum of (1) the weighted-average number of common shares outstanding during the period, (2) the dilutive effect of the assumed exercise of options and warrants using the treasury stock method and (3) the dilutive effect of other potentially dilutive securities. For purposes of the diluted net loss per share calculation, options and warrants are potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. As of March 31, 2023 loss per share excludes 15,001,613 11,510,319 Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). ASU 2021-10 increases the disclosure requirements for annual reporting periods relating to material government assistance transactions on the entity’s financial statements and any significant terms and conditions of the agreements including commitments and contingencies. The new standard was effective for the Company on October 1, 2022 but only impacts annual financial statement footnote disclosures. The adoption of ASU 2021-10 is expected to impact the disclosures related to the research and development incentive income that the Company receives from the Australian Tax Office (“ATO”) for its clinical trials in Australia.

Other Income

Other Income	6 Months Ended
	Mar. 31, 2023
Other Income
Other Income	Note 3 Other Income Grant Income As of March 31, 2023, the Company had received $ 995,862 ® 497,931 497,931 The grant income was recorded to deferred grant income when received and is being amortized to grant income as the related research and development expenditures are incurred. During the three and six months ended March 31, 2023, the Company recognized $ 0 25,000 0 0 916,763 443,831 Research and development incentive income Research and development incentive income represents the income earned by Anavex Australia, of the Australian research and development tax incentive credit (the “Tax Incentive Credit”). During the three and six months ended March 31, 2023, the Company recorded research and development incentive income of $ 749,681 1,099,134 1,483,271 2,215,753 835,513 1,146,955 1,646,243 2,263,317 The Company evaluates its eligibility under the tax incentive program as of each balance sheet date based on the most current and relevant data available. Although the Company believes that it complies with all the relevant conditions of the program, the Company may be subject to pre-issue review or audit by the ATO, and the ATO may have different interpretations of certain eligibility requirements. Currently, the Company’s tax incentive claims from 2018 to 2022 are open to potential review or audit by the ATO.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Note 4 Accrued Liabilities The principal components of accrued liabilities consist of: Schedule of accrued liabilities March 31, September 30, 2023 2022 Accrued clinical site and patient visits costs $ 2,168,950 $ 2,031,105 Accrued compensation and benefits 1,572,500 1,297,337 Fixed contract accruals 82,666 417,414 Milestone based contract accruals 1,041,930 137,337 All other accrued liabilities 1,956,792 2,061,760 Total accrued liabilities 6,822,838 5,944,953

Equity Offerings

Equity Offerings	6 Months Ended
	Mar. 31, 2023
Equity Offerings
Equity Offerings	Note 5 Equity Offerings Common Stock Common shares are voting and are entitled to dividends as declared at the discretion of the Board of Directors (the “Board”). Preferred Stock The Company’s Board has the authority to issue preferred stock in one or more series and to fix the rights, preferences, privileges, restrictions and the number of shares constituting any series of the designation of the series. Sales Agreement The Company entered into a Controlled Equity Offering Sales Agreement on July 6, 2018, which was amended and restated on May 1, 2020 (the “Sales Agreement”) with Cantor Fitzgerald & Co. and SVB Leerink LLC (together the “Sales Agents”), pursuant to which the Company may offer and sell shares of common stock registered under an effective registration statement from time to time through the Sales Agents (the “Offering”). Upon delivery of a placement notice based on the Company’s instructions and subject to the terms and conditions of the Sales Agreement, the Sales Agents may sell the Shares by methods deemed to be an “at the market offering” offering, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of the Company. The Company is not obligated to make any sales of Shares under the Sales Agreement. The Company or Sales Agents may suspend or terminate the offering of Shares upon notice to the other party, subject to certain conditions. The Sales Agents will act as agent on a commercially reasonable efforts basis consistent with their normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. The Company has agreed to pay the Sales Agents commissions for their services of up to 3.0 no 1,066,389 14,803,464 14,265,658 142,407,882 142,407,882 Purchase Agreement On February 3, 2023, the Company entered into a $150,000,000 purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which the Company has the right to sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $ 150,000,000 In consideration for entering into the Purchase Agreement, the Company issued to Lincoln Park 75,000 75,000 150,000,000 844,500 119,844 During the six months ended March 31, 2023, the Company issued to Lincoln Park an aggregate of 2,159,080 0 2,075,000 0 18,152,500 0 9,080 0 At March 31, 2023, an amount of $ 131,847,500 0

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 Commitments and Contingencies Leases During the three and six months ended March 31, 2023, the Company incurred office lease expense of $ 30,070 60,140 16,488 21,333 Employee 401(k) Benefit Plan The Company has a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers all United States based employees. United States based employees eligible to participate in the plan may contribute up to the current statutory limits under the Internal Revenue Service regulations. The 401(k) plan permits the Company to make additional matching contributions on behalf of contributing employees. During the three and six months ended March 31, 2023, the Company made $ 56,230 99,876 70,940 93,622 Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s consolidated financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. Share Purchase Warrants At March 31, 2023 and September 30, 2022, the Company had 160,000 3.72 Schedule of share purchase warrants outstanding Number Exercise Price Expiry Date 150,000 $ 3.17 May 6, 2024 10,000 $ 12.00 April 21, 2026 160,000 Stock–based Compensation Plan 2015 Stock Option Plan On September 18, 2015, the Company’s Board approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provided for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company. The maximum number of our common shares reserved for issue under the plan was 6,050,553 2019 Stock Option Plan On January 15, 2019, the Board approved the 2019 Omnibus Incentive Plan (the “2019 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees, consultants and advisors of the Company. The maximum number of our common shares reserved for issue under the plan was 6,000,000 During the year ended September 30, 2022, 406,453 2022 Stock Option Plan On March 25, 2022, the Board approved the 2022 Omnibus Incentive Plan (the “2022 Plan”). The 2022 Plan was approved by stockholders on May 24, 2022. Under the terms of the 2022 Plan, 10,000,000 The 2022 Plan provides that it may be administered by the Board, or the Board may delegate such responsibility to a committee. The exercise price will be determined by the Board at the time of grant and shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2022 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2022 Plan. As at March 31, 2023, 3,916,000 6,557,952 A summary of the status of Company’s outstanding stock options is presented below: Schedule of outstanding stock purchase options Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate intrinsic value Outstanding, September 30, 2021 11,330,903 5.74 — 140,132,451 Granted 2,358,000 10.13 7.07 — Forfeited (118,750 ) 6.86 5.23 — Exercised (400,537 ) 2.52 1.88 4,201,015 Outstanding, September 30, 2022 13,169,616 6.61 62,267,309 Granted 1,863,000 9.36 6.64 — Exercised (133,503 ) 3.29 2 59 868,537 Forfeited (57,500 ) 11.73 9.09 — Outstanding, March 31, 2023 14,841,613 6.97 43,709,206 Exercisable, March 31, 2023 9,937,362 4.78 43,099,822 The following summarizes information about stock options at March 31, 2023 by a range of exercise prices: Schedule Of Share-based Payment Arrangement, Option, Activity Range of exercises prices Number of Outstanding Weighted average remaining contractual Me Weighted average Number of vested Weighted average From To options (in years) exercise price options exercise price $ 0.92 $ 2.96 3,834,559 4.60 $ 2.29 3,834,559 $ 2.29 $ 3.15 $ 4.80 2,022,500 4.82 $ 3.28 2,017,500 $ 3.28 $ 5.04 $ 8.98 5,307,054 6.72 $ 6.89 3,345,720 $ 6.08 $ 9.20 $ 13.01 2,118,000 8.87 $ 10.68 312,083 $ 11.94 $ 13.22 $ 24.58 1,559,500 7.99 $ 18.48 427,500 $ 18.90 14,841,613 6.35 $ 6.97 9,937,362 $ 4.78 The weighted average grant date fair value of options vested during the six months ended March 31, 2023 was $ 3.67 3.20 6.35 6.40 4.92 5.1 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at March 31, 2023. During the three and six months ended March 31, 2023, the Company recognized stock-based compensation expense of $ 3,970,064 9,316,572 4,439,456 8,348,230 Schedule of general and administrative expenses and research and development expenses Three months ended March 31, Six months end March 31, 2023 2022 2023 2022 General and administrative $ 1,256,845 $ 1,577,831 $ 2,999,370 $ 3,249,557 Research and development 2,713,219 2,861,625 6,317,202 5,098,673 Total stock-based compensation $ 3,970,064 $ 4,439,456 $ 9,316,572 $ 8,348,230 An amount of approximately $ 21,781,736 The fair value of each option award granted during the three and six months ended March 31, 2023 and 2022 is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: Schedule of weighted average assumptions for fair value of each option award 2023 2022 Risk-free interest rate 3.69 % 1.40 % Expected life of options (years) 5.61 4.90 Annualized volatility 85.28 % 95.88 % Dividend rate 0.00 % 0.00 % The fair value of stock compensation charges recognized during the three and six months ended March 31, 2023 and 2022 was determined with reference to the quoted market price of the Company’s shares on the grant date.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation These accompanying unaudited condensed interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain information and note disclosures normally included in the annual financial statements in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures are adequate to make the information presented not misleading. These accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained herein. The consolidated balance sheet as of September 30, 2022 was derived from the audited annual financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 30, 2022 filed with the SEC on November 28, 2022. The Company follows the same accounting policies in the preparation of interim reports. Operating results for the three and six months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023.
Liquidity	Liquidity All of the Company’s potential drug compounds are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or, if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues. To date, we have not generated any revenues from our operations. The Company expects the business to continue to experience negative cash flows from operations for the foreseeable future and cannot predict when, if ever, our business might become profitable. Management believes that the current working capital position will be sufficient to meet the Company’s working capital requirements beyond the next 12 months after the date that these condensed interim consolidated financial statements are issued. The process of drug development can be costly, and the timing and outcomes of clinical trials are uncertain. The assumptions upon which the Company has based its estimates are routinely evaluated and may be subject to change. The actual amount of the Company’s expenditures will vary depending upon a number of factors including but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and development programs and the level of financial resources available. The Company has the ability to adjust its operating plan spending levels based on the timing of future clinical trials. Other than our rights related to the Sales Agreement and the Purchase Agreement (as defined below in Note 5), there can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If the Company is not able to obtain the additional financing on a timely basis, if and when it is needed, it will be forced to delay or scale down some or all of its research and development activities.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to accounting for research and development costs, incentive income receivable, valuation and recoverability of deferred tax assets, stock-based compensation, and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiaries, Anavex Australia Pty Limited (“Anavex Australia”), a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada. All inter-company transactions and balances have been eliminated.
Fair Value Measurements	Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. At March 31, 2023 and September 30, 2022, the Company did not have any Level 3 assets or liabilities.
Basic and Diluted Loss per Share	Basic and Diluted Loss per Share Basic income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the sum of (1) the weighted-average number of common shares outstanding during the period, (2) the dilutive effect of the assumed exercise of options and warrants using the treasury stock method and (3) the dilutive effect of other potentially dilutive securities. For purposes of the diluted net loss per share calculation, options and warrants are potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. As of March 31, 2023 loss per share excludes 15,001,613 11,510,319
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). ASU 2021-10 increases the disclosure requirements for annual reporting periods relating to material government assistance transactions on the entity’s financial statements and any significant terms and conditions of the agreements including commitments and contingencies. The new standard was effective for the Company on October 1, 2022 but only impacts annual financial statement footnote disclosures. The adoption of ASU 2021-10 is expected to impact the disclosures related to the research and development incentive income that the Company receives from the Australian Tax Office (“ATO”) for its clinical trials in Australia.

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Schedule of accrued liabilities March 31, September 30, 2023 2022 Accrued clinical site and patient visits costs $ 2,168,950 $ 2,031,105 Accrued compensation and benefits 1,572,500 1,297,337 Fixed contract accruals 82,666 417,414 Milestone based contract accruals 1,041,930 137,337 All other accrued liabilities 1,956,792 2,061,760 Total accrued liabilities 6,822,838 5,944,953

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of share purchase warrants outstanding	Schedule of share purchase warrants outstanding Number Exercise Price Expiry Date 150,000 $ 3.17 May 6, 2024 10,000 $ 12.00 April 21, 2026 160,000
Schedule of outstanding stock purchase options	Schedule of outstanding stock purchase options Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate intrinsic value Outstanding, September 30, 2021 11,330,903 5.74 — 140,132,451 Granted 2,358,000 10.13 7.07 — Forfeited (118,750 ) 6.86 5.23 — Exercised (400,537 ) 2.52 1.88 4,201,015 Outstanding, September 30, 2022 13,169,616 6.61 62,267,309 Granted 1,863,000 9.36 6.64 — Exercised (133,503 ) 3.29 2 59 868,537 Forfeited (57,500 ) 11.73 9.09 — Outstanding, March 31, 2023 14,841,613 6.97 43,709,206 Exercisable, March 31, 2023 9,937,362 4.78 43,099,822
Schedule Of Share-based Payment Arrangement, Option, Activity	Schedule Of Share-based Payment Arrangement, Option, Activity Range of exercises prices Number of Outstanding Weighted average remaining contractual Me Weighted average Number of vested Weighted average From To options (in years) exercise price options exercise price $ 0.92 $ 2.96 3,834,559 4.60 $ 2.29 3,834,559 $ 2.29 $ 3.15 $ 4.80 2,022,500 4.82 $ 3.28 2,017,500 $ 3.28 $ 5.04 $ 8.98 5,307,054 6.72 $ 6.89 3,345,720 $ 6.08 $ 9.20 $ 13.01 2,118,000 8.87 $ 10.68 312,083 $ 11.94 $ 13.22 $ 24.58 1,559,500 7.99 $ 18.48 427,500 $ 18.90 14,841,613 6.35 $ 6.97 9,937,362 $ 4.78
Schedule of general and administrative expenses and research and development expenses	Schedule of general and administrative expenses and research and development expenses Three months ended March 31, Six months end March 31, 2023 2022 2023 2022 General and administrative $ 1,256,845 $ 1,577,831 $ 2,999,370 $ 3,249,557 Research and development 2,713,219 2,861,625 6,317,202 5,098,673 Total stock-based compensation $ 3,970,064 $ 4,439,456 $ 9,316,572 $ 8,348,230
Schedule of weighted average assumptions for fair value of each option award	Schedule of weighted average assumptions for fair value of each option award 2023 2022 Risk-free interest rate 3.69 % 1.40 % Expected life of options (years) 5.61 4.90 Annualized volatility 85.28 % 95.88 % Dividend rate 0.00 % 0.00 %

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - shares	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Loss per share for potentially dilutive common shares	15,001,613	11,510,319

Other Income (Details Narrative

Other Income (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022
Research and development incentive income	$ 749,681	$ 835,513	$ 1,483,271	$ 1,646,243
Grant income	0	0	25,000	0
Deferred grant income	916,763		916,763			$ 443,831
Australia, Dollars
Research and development incentive income	$ 1,099,134	$ 1,146,955	2,215,753	$ 2,263,317
Anavex [Member]
Research and development incentive income			497,931		$ 497,931
Michael J Fox [Member]
Research and development incentive income			$ 995,862

Accrued liabilities (Details)

Accrued liabilities (Details) - USD ($)	Mar. 31, 2023	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued clinical site and patient visits costs	$ 2,168,950	$ 2,031,105
Accrued compensation and benefits	1,572,500	1,297,337
Fixed contract accruals	82,666	417,414
Milestone based contract accruals	1,041,930	137,337
All other accrued liabilities	1,956,792	2,061,760
Total accrued liabilities	$ 6,822,838	$ 5,944,953

Equity Offerings (Details Narra

Equity Offerings (Details Narrative) - USD ($)		6 Months Ended		12 Months Ended
	Feb. 03, 2023	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales of agreement amount		$ 142,407,882		$ 142,407,882
Fair value of the initial commitment		844,500
Third-Party Payor [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Incurred expenses		$ 119,844
Equity Offering Sales Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of common stock sold		0
Equity Offering Sales Agreement [Member] | Cantor Fitzgerald And Co [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of gross proceeds from sales		3%
Number of common stock sold			1,066,389
Sold for gross proceeds amount			$ 14,803,464
Proceeds from Issuance Public Offering		$ 14,265,658
2019 Purchase Agreement [Member] | Lincoln Park Capital Fund, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Value of shares obligated to purchase	$ 150,000,000
Share issued for offering, shares	75,000	2,159,080	0
Pro rata basic number of shares obligated to purchase	75,000
Proceeds from Issuance or Sale of Equity	$ 150,000,000
Number of shares issued for aggregate purchase price		2,075,000	0
Number of shares issued for aggregate purchase price, value		$ 18,152,500	$ 0
Number of shares issued for commitment		9,080	0
Amount of shares remain available		$ 131,847,500		$ 0

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number	160,000
Purchase Warrants 1 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number	150,000
Exercise Price | $ / shares	$ 3.17
Expiry Date	May 06, 2024
Purchase Warrants 2 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number	10,000
Exercise Price | $ / shares	$ 12
Expiry Date	Apr. 21, 2026

Commitments and Contingencies_3

Commitments and Contingencies (Details 1) - Equity Option [Member] - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Offsetting Assets [Line Items]
Options Outstanding at beginning	13,169,616	11,330,903
Weighted Average Exercise Price Outstanding at beginning	$ 6.61	$ 5.74
Aggregate intrinsic value Outstanding at beginning	$ 62,267,309	$ 140,132,451
Options Granted	1,863,000	2,358,000
Weighted Average Exercise Price Granted	$ 9.36	$ 10.13
Weighted Average Grant Date Fair Value Granted	$ 6.64	$ 7.07
Options Forfeited	(57,500)	(118,750)
Weighted Average Exercise Price Forfeited	$ 11.73	$ 6.86
Weighted Average Grant Date Fair Value Forfeited	$ 9.09	$ 5.23
Options Exercised	(133,503)	(400,537)
Weighted Average Exercise Price Exercised	$ 3.29	$ 2.52
Weighted Average Grant Date Fair Value Exercised	$ 2	$ 1.88
Aggregate intrinsic value Exercised	$ 868,537	$ 4,201,015
Options Outstanding at ending	14,841,613	13,169,616
Weighted Average Exercise Price Outstanding at ending	$ 6.97	$ 6.61
Aggregate intrinsic value Outstanding at ending	$ 43,709,206	$ 62,267,309
Options Exercisable at ending	9,937,362
Weighted Average Exercise Price Exercisable at ending	$ 4.78
Aggregate intrinsic value Exercisable at ending	$ 43,099,822

Commitments and Contingencies_4

Commitments and Contingencies (Details 2) - $ / shares	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Sep. 30, 2021
Offsetting Assets [Line Items]
Weighted average remaining contractual life (in years)	6 years 4 months 6 days	6 years 4 months 24 days
Equity Option [Member]
Offsetting Assets [Line Items]
Number of outstanding options	14,841,613	13,169,616	11,330,903
Weighted average remaining contractual life (in years)	6 years 4 months 6 days
Weighted average exercise price	$ 6.97	$ 6.61	$ 5.74
Number of vested options	9,937,362
Weighted average exercise price options vested	$ 4.78
Equity Option [Member] | Option Price 1 [Member]
Offsetting Assets [Line Items]
Range of exercise prices, lower range limit	0.92
Range of exercise prices, upper range limit	$ 2.96
Number of outstanding options	3,834,559
Weighted average remaining contractual life (in years)	4 years 7 months 6 days
Weighted average exercise price	$ 2.29
Number of vested options	3,834,559
Weighted average exercise price options vested	$ 2.29
Equity Option [Member] | Option Price 2 [Member]
Offsetting Assets [Line Items]
Range of exercise prices, lower range limit	3.15
Range of exercise prices, upper range limit	$ 4.80
Number of outstanding options	2,022,500
Weighted average remaining contractual life (in years)	4 years 9 months 25 days
Weighted average exercise price	$ 3.28
Number of vested options	2,017,500
Weighted average exercise price options vested	$ 3.28
Equity Option [Member] | Option Price 3 [Member]
Offsetting Assets [Line Items]
Range of exercise prices, lower range limit	5.04
Range of exercise prices, upper range limit	$ 8.98
Number of outstanding options	5,307,054
Weighted average remaining contractual life (in years)	6 years 8 months 19 days
Weighted average exercise price	$ 6.89
Number of vested options	3,345,720
Weighted average exercise price options vested	$ 6.08
Equity Option [Member] | Option Price 4 [Member]
Offsetting Assets [Line Items]
Range of exercise prices, lower range limit	9.20
Range of exercise prices, upper range limit	$ 13.01
Number of outstanding options	2,118,000
Weighted average remaining contractual life (in years)	8 years 10 months 13 days
Weighted average exercise price	$ 10.68
Number of vested options	312,083
Weighted average exercise price options vested	$ 11.94
Equity Option [Member] | Option Price 5 [Member]
Offsetting Assets [Line Items]
Range of exercise prices, lower range limit	13.22
Range of exercise prices, upper range limit	$ 24.58
Number of outstanding options	1,559,500
Weighted average remaining contractual life (in years)	7 years 11 months 26 days
Weighted average exercise price	$ 18.48
Number of vested options	427,500
Weighted average exercise price options vested	$ 18.90

Commitments and Contingencies_5

Commitments and Contingencies (Details 3) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Loss Contingencies [Line Items]
Total share based compensation	$ 3,970,064	$ 4,439,456	$ 9,316,572	$ 8,348,230
General and Administrative Expense [Member]
Loss Contingencies [Line Items]
Total share based compensation	1,256,845	1,577,831	2,999,370	3,249,557
Research and Development Expense [Member]
Loss Contingencies [Line Items]
Total share based compensation	$ 2,713,219	$ 2,861,625	$ 6,317,202	$ 5,098,673

Commitments and Contingencies_6

Commitments and Contingencies (Details 4)	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Risk-free interest rate	3.69%	1.40%
Expected life of options (years)	5 years 7 months 9 days	4 years 10 months 24 days
Annualized volatility	85.28%	95.88%
Dividend rate	0%	0%

Commitments and Contingencies_7

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Incurred office lease expense	$ 30,070	$ 16,488	$ 60,140	$ 21,333
Contribution amount	$ 56,230	70,940	$ 99,876	$ 93,622
Warrants outstanding	160,000		160,000		160,000
Warrants outstanding weighted average exercise	$ 3.72		$ 3.72		$ 3.72
Option issued			3,916,000
Weighted average grant date fair value of options vested			$ 3.67	$ 3.20
Weighted average contractual life of options outstanding			6 years 4 months 6 days		6 years 4 months 24 days
Options exercisable			4 years 11 months 1 day		5 years 1 month 6 days
Share based compensation	$ 3,970,064	$ 4,439,456	$ 9,316,572	$ 8,348,230
Remaining stock based compensation	$ 21,781,736		$ 21,781,736
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum number of common shares reserved for future issuance	6,050,553		6,050,553
Stock Option Plan 2019 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Additional shares of common stock available for issuance			6,000,000
Stock Option Plan 2022 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Additional shares of common stock available for issuance			10,000,000
Option granted					406,453
Option available issue	6,557,952		6,557,952